Positive feasibility study at Geomaque’s Mexican play

Junior Geomaque Explorations (CDN) has received a positive feasibility study on its San Francisco heap-leach gold project in northwestern Mexico.

The study, based on more than 98,000 ft. of drilling, estimates the property contains a minable reserve of 4.9 million tons at 0.041 oz. gold per ton.

The ground, 90 miles north of Hermosillo, has mineralized zones which are apparently open in several directions. A geologic resource of 26.2 million tons grading 0.032 oz. has been estimated.

The deposit will be mined via open pit, with production forecast at one million tons per year over five years. With recoveries estimated at 72%, annual output should be in the 29,000-30,000-oz. range. Cash operating costs are projected at $245 per oz.

Construction is expected to last nine months, with capital costs estimated at US$5.2 million. Geomaque President John Paterson told The Northern Miner that the company is trying to raise funds for development.

The study was performed by Mine Development Associates of Reno, Nev.